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This Money-Doubler Should Continue to Rally Well Into 2014

Life in 21st-century America is replete with the hustle and bustle of work, school, raising kids and just generally trying to make life a little better. Yet, sometimes you just feel the need to take a break and be a little lazy. Well, I say why not let those lazy proclivities make you some money?

One way to do just that is with shares of furniture maker La-Z-Boy (NYSE: LZB).

On Thursday, LZB spiked to an 11-year high one day after the company reported yet another earnings beat.

The furniture retailer, which does business on both the retail and the wholesale side, said it saw net income of $16.7 million, or a profit of $0.31 a share, in fiscal Q2. These metrics represent a more than doubling of the $6.6 million, or $0.12 per share, the company earned in the same quarter a year ago. The top line also impressed, as revenue jumped 14% year over year to $366.4 million.

LZB's numbers beat on both the EPS and revenue fronts, as Wall Street was expecting earnings of just $0.26 per share on revenue of $349 million. Even more impressive, however, is the company's sustained profit growth, which has held above 46% for the past four quarters.

According to LZB's Q2 report, the company saw strong sales in its wholesale upholstery segment, with that measure up 14.2% to $296.2 million. As for the retail segment, sales jumped 19.9% year over year to $73.4 million.

One reason for the appeal of La-Z-Boy's furniture offerings could be its continued rollout of new products and the accompanying marketing efforts.

In the conference call following the earnings release, CEO Kurt Darrow said, "Over the last couple of years, we have had a steady cadence of new product introductions to appeal to a wider base of consumers, which has dovetailed nicely with our Live Life Comfortably marketing campaign."

This new product strategy definitely is working for the company's bottom line, but it's also working superbly for LZB stock. Shares of have been on a tremendous run over the past five years, with the stock up about 800%.

So far in 2013, LZB has doubled. Perhaps even more impressive are the recent gains, with the stock up more than 25% in just the past month.

I suspect LZB will keep executing on both the top and bottom line over the next couple of quarters. If that happens, I think another 20%-plus run in the shares by next spring will turn out to be a rather conservative upside call.

Recommended Trade Setup:

-- Buy LZB at the market price-- Set stop-loss at $25.47, approximately 10% below the current price-- Set initial price target at $34.62 for a potential 23% gain in six months